Desktop Metal Announces Fourth Quarter and Full Year 2023 Financial Results

DESKTOP METAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Years Ended December 31,

 

 

2023

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(323,271)

 

$

(740,343)

 

$

(240,334)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

53,632

 

 

50,767

 

 

24,854

Stock‑based compensation

 

 

33,177

 

 

48,001

 

 

28,778

Impairment charges

 

 

8,518

 

 

 

 

Goodwill impairment

 

 

112,911

 

 

498,800

 

 

Inventory write-off

 

 

28,966

 

 

 

 

Change in fair value of warrant liability

 

 

 

 

 

 

56,576

Change in fair value of subscription agreement

 

 

 

 

 

 

2,920

Amortization of capitalized commissions

 

 

318

 

 

 

 

Amortization (accretion) of discount on investments

 

 

(490)

 

 

(888)

 

 

3,021

Amortization of debt financing cost

 

 

 

 

 

 

9

Amortization of deferred costs on convertible notes

 

 

731

 

 

453

 

 

Provision for bad debt

 

 

2,215

 

 

975

 

 

447

Provision for slow-moving, obsolete, and lower of cost or net realizable value inventories, net

 

 

17

 

 

(45)

 

 

Acquired in-process research and development

 

 

 

 

 

 

25,581

Loss on disposal of property and equipment

 

 

209

 

 

224

 

 

74

Net increase (decrease) in accrued interest related to marketable securities

 

 

238

 

 

847

 

 

(819)

Net unrealized (gain) loss on equity investment

 

 

464

 

 

6,332

 

 

9,660

Net unrealized (gain) loss on other investments

 

 

-

 

 

1,595

 

 

(130)

Deferred tax benefit

 

 

(3,105)

 

 

(1,498)

 

 

(29,668)

Change in fair value of contingent consideration

 

 

 

 

(1,567)

 

 

(429)

Foreign currency transaction (gain) loss

 

 

(613)

 

 

303

 

 

189

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,297)

 

 

6,737

 

 

(18,299)

Inventory

 

 

(19,079)

 

 

(28,183)

 

 

(16,962)

Prepaid expenses and other current assets

 

 

5,205

 

 

1,787

 

 

(8,937)

Other assets

 

 

4,265

 

 

2,505

 

 

(3)

Accounts payable

 

 

(6,894)

 

 

(6,595)

 

 

12,797

Accrued expenses and other current liabilities

 

 

1,966

 

 

(10,613)

 

 

(8,761)

Customer deposits

 

 

(6,169)

 

 

(2,037)

 

 

(2,569)

Current portion of deferred revenue

 

 

(1,962)

 

 

(4,749)

 

 

5,989

Change in right of use assets and lease liabilities, net

 

 

(6,626)

 

 

(4,298)

 

 

(641)

Other liabilities

 

 

1,679

 

 

(41)

 

 

1,609

Net cash used in operating activities

 

 

(114,995)

 

 

(181,531)

 

 

(155,048)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,762)

 

 

(11,517)

 

 

(7,683)

Purchase of other investments

 

 

 

 

 

 

(3,620)

Proceeds from other investments

 

 

4,089

 

 

3,155

 

 

Purchase of equity investment

 

 

 

 

 

 

(20,000)

Proceeds from sale of property and equipment

 

 

9,942

 

 

6

 

 

44

Proceeds from policy buyout

 

 

 

 

 

 

333

Purchase of marketable securities

 

 

(4,973)

 

 

(158,404)

 

 

(330,873)

Proceeds from sales and maturities of marketable securities

 

 

112,719

 

 

248,150

 

 

243,349

Proceeds from capital grant

 

 

 

 

200

 

 

Cash paid to acquire in-process research and development

 

 

 

 

 

 

(21,220)

Cash paid for acquisitions, net of cash acquired

 

 

(1,750)

 

 

(23)

 

 

(287,624)

Net cash provided by (used in) investing activities

 

 

117,265

 

 

81,567

 

 

(427,294)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from reverse recapitalization, net of issuance costs

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

1,203

 

 

3,190

 

 

6,426

Proceeds from the exercise of stock warrants

 

 

 

 

 

 

170,665

Payment of taxes related to net share settlement upon vesting of restricted stock units

 

 

(250)

 

 

(243)

 

 

(541)

Repayment of loans

 

 

(419)

 

 

(542)

 

 

Proceeds from issuance of convertible notes

 

 

 

 

115,000

 

 

Costs incurred in connection with the issuance of convertible notes

 

 

 

 

(3,619)

 

 

Repayment of term loan

 

 

 

 

 

 

(10,000)

Net cash provided by financing activities

 

 

534

 

 

113,786

 

 

166,550

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(27)

 

 

(167)

 

 

(87)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

2,777

 

 

13,655

 

 

(415,879)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

81,913

 

 

68,258

 

 

484,137

Cash, cash equivalents, and restricted cash at end of period

 

$

84,690

 

$

81,913

 

$

68,258

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

83,845

 

$

76,291

 

$

65,017

Restricted cash included in other current assets

 

 

233

 

 

4,510

 

 

2,129

Restricted cash included in other noncurrent assets

 

 

612

 

 

1,112

 

 

1,112

Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows

 

$

84,690

 

$

81,913

 

$

68,258

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Interest paid

 

$

6,900

 

$

3,488

 

$

148

Taxes paid

 

$

 

$

 

$

150

 

 

 

 

 

 

 

 

 

 

Non‑cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Net unrealized (gain) loss on investments

 

$

(339)

 

$

290

 

$

40

Exercise of private placement warrants

 

$

 

$

 

$

149,904

Common Stock issued for acquisitions

 

$

 

$

 

$

620,590

Common Stock issued for acquisition of in-process research and development

 

$

 

$

 

$

4,300

Common Stock issued for settlement of contingent consideration

 

$

797

 

$

500

 

$

Accrued purchase price related to acquisitions

 

$

 

$

 

$

1,800

Additions to right of use assets and lease liabilities

 

$

13,926

 

$

10,812

 

$

5,582

Purchase of property and equipment included in accounts payable

 

$

239

 

$

516

 

$

90

Purchase of property and equipment included in accrued expense

 

$

31

 

$

 

$

38

Transfers from property and equipment to inventory

 

$

2,214

 

$

4,993

 

$

1,068

Transfers from inventory to property and equipment

 

$

1,566

 

$

4,513

 

$

1,435

Accrued contingent consideration in connection with acquisitions

 

$

 

$

 

$

6,083

Taxes related to net share settlement upon vesting of restricted stock awards in accrued expense

 

$

 

$

 

$

958

Deferred contract costs

 

$

 

$

1,341

 

$

Equipment financing

 

$

 

$

175

 

$

See notes to consolidated financial statements.

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